Nissan Motor Co.’s biggest shareholder said emphatically that terminating tie-up talks with Honda Motor Co. was the right decision.

Japanese automakers Honda, Nissan and Mitsubishi said Thursday they are dropping their talks for a business integration. The automakers agreed to end their agreement regarding the consideration of the structure for a collaboration of the trio,

Nissan and Honda ended talks to merge and create a $60 billion carmaker on Thursday, pitching Nissan into deeper uncertainty and underlining the difficulties faced by many auto manufacturers as Chinese rivals disrupt the industry.

Honda proposed changing the structure of the intended merger from a joint holding company, as agreed initially, to a deal with Honda as the parent company and Nissan its subsidiary through a share exchange. Both companies concluded eventually that it was best to “cease discussions,” the statement added.